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As the future of Japan’s casino industry begins to take shape, a senior government advisor has said that VIP junkets, like those that bring exclusive groups of Chinese whales to Macau, will not be allowed in the country’s soon to launch integrated casino resorts industry. The National Diet, Japan’s equivalent of a parliament, signed the Integrated Resorts Implementation Bill of prime Minister Shinzo’s Abe’s government into law at the end of July. The new law officially authorizes the construction and operation of three integrated resort casinos, places a 30% tax on gross gambling revenues, sets an entrance fee of $56 for locals to enter the casino and caps local visits to the casino to three days a week or 10 days a month. Just last month, the country announced the creation of a new regulatory body to oversee the industry, the Casino Administration Committee. With approximately 100 members the agency will be tasked with overseeing the casino licensing process and the day-to-day regulation of the three new, multi-billion-dollar integrated resorts. Over in Macau, VIP junkets have formed the core of the former Portuguese enclave’s gambling industry. High rollers from China are flown in and given the full VIP treatment, generating over half of all Macau’s gross gambling revenue. Junkets, which not only bring in the whales but also extend them lines of credit in conjunction with the casino and collect on gambling debts, have been the engine behind Macau’s economic growth ever since the Special Administrative Region lifted billionaire Stanley Ho’s monopoly on casino gambling and started issuing casino gambling licenses in 2001. The move saw gross gambling revenue jump from $3.5 billion in 2003 to well over $45 billion ten years later.
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